Mortgage & Realty Trims Loss to $3.6 Million

Mortgage & Realty Trust, a real estate investment trust that recently emerged from bankruptcy reorganization, reported a fiscal third-quarter loss of $3.6 million, compared with a year-earlier loss of $8.26 million.

The losses narrowed largely because the trust, which has executive offices in Burbank and Elkins Park, Pa., reserved a smaller amount for its real estate losses: $3 million in the latest quarter compared with a loss provision of $13.1 million a year earlier.

Still, the trust said it “continues to see a deterioration in real estate markets” caused in part by lower rental rates and an oversupply of commercial building space. The trust’s revenue in the quarter ended June 30 fell 22%, to $13.9 million from $17.8 million a year earlier.

For the first nine months of its fiscal year, Mortgage & Realty lost $20.2 million, compared with a year-earlier profit of $1.37 million. Its nine-month revenue fell 15%, to $43.7 million from $51.5 million.